Concern about China's debt load is mounting, but there are signs that higher interest rates may finally be helping the country get to grips with the wasteful investment and excessive borrowing that has fueled the economy since the global financial crisis.
An official audit showing a big jump in Chinese government debt since 2010 caused some alarm last week, but in fact corporate debt may present an even bigger risk.
The audit showed that local and central government debt equaled 58 percent of gross domestic product last year, and most economists estimate that corporate debt is at least twice that level.
For now though, explosive debt growth appears to be slowing. At least 35 Chinese companies canceled or postponed previously planned bond sales totaling 59 billion yuan($9.75 billion) in the last two months, according to Reuters calculations based on public disclosures.